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How to Switch Your Electricity & Gas Provider in Australia

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Switching energy providers

Thanks to the deregulation of the electricity and gas market within certain parts of Australia, it’s easier than ever to switch your energy provider. If you haven’t shopped around and switched providers recently, you might be paying the dreaded “lazy tax”, paying more for your energy because any discounts or benefits on your previous energy plan have ended. Whether you’ve never switched providers before, or want to make the process easier this time around, continue reading to learn more about switching your energy provider in Australia.

Why Should I Switch Energy Providers?

Since the deregulation of the NEM in Australia, those living in Sydney and New South Wales have been able to enjoy full retail contestability meaning; if you live in New South Wales you are free to choose and switch your energy provider when you want. However, many people haven’t taken the time to switch energy providers, which can lead to consumers paying more than they should be paying for their energy bills, and not getting the best deal available.

While switching energy providers in NSW isn’t difficult, there are a lot of misconceptions:

 It takes a lot of time to compare and switch energy providers: Comparing energy providers in NSW to find the best one to switch to is actually very easy. Thanks to a growing number of energy comparison websites, such as Selectra, you can quickly and easily find the best electricity provider, and sign up online with nothing more than a few personal details and valid identification.

 Your power will be cut off when you switch energy providers: While you purchase energy through your energy provider, it’s actually the distributor that supplies energy to your house. When you make the energy switch in NSW, your distributor will continue to supply energy to your house, so you won’t be without electricity.

 Making the energy switch in NSW is expensive: You might have heard of expensive early termination fees to leave energy contracts early. These days, almost all energy contracts are no lock-in, meaning you can leave and switch energy providers at any time without needing to pay an exit fee.

 Why does switching matter? All energy providers are the same: With over 24 energy providers in New South Wales, it’s absolutely not true to claim they are all the same. Each provider offers different discounts, rates, and incentives to try and get you to switch to them. By comparing these different deals, you can find the best energy provider in NSW for you.

So, why should you make the energy switch in NSW? If you haven’t compared providers in a long time, or haven’t switched energy providers at all, you’re probably paying too much on your energy bills. There is no benefit to staying with the same provider, and if you haven’t shopped around recently you might be paying “the lazy tax”, meaning you’re not getting any sort of discounts or benefits from your current energy provider. Switching energy providers is easy, and if you take the time to compare and switch now, you could save hundreds of dollars per year.

Still paying too much for your electricity?You might be eligible for government concessions and rebates in New South Wales, which can help you pay for your electricity and gas bills if you're experiencing financial hardship.

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Deregulation of Australian Energy: The National Electricity Market

First beginning in 1998, the National Electricity Market (the NEM) is the complex network of physical and financial institutions that make up the electricity generation and distribution in Australia. The NEM spreads across Australia, covering New South Wales, South Australia, Queensland, the ACT, Victoria, and Tasmania with additional deregulation of natural gas in Western Australia.

With the creation of the NEM, and the deregulation of energy providers that resulted, competition within the electricity and gas markets in Australia increased tenfold.

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Switching Energy Providers: Compare Your Options

The first step to switching is to compare energy providers. With over 39 active electricity retailers and over 19 natural gas retailers within the NEM, it can be difficult to know if you’re really choosing the right plan for your household.

To make the process easier, it helps if you have a copy of your electricity or gas bill to know exactly how much energy you use and how much you pay for it. Then, you can compare it to other providers to make sure you’re getting the best deal.

Choose an Energy Retailer

Energy Providers in Australia are split into three categories: The Big Three, Tier 1, and Tier 2.

  • The Big Three: The three largest energy providers in Australia; AGL, Origin Energy, and EnergyAustralia. These three providers make up the largest collective market share within the NEM, and have some of the biggest household name recognition in the country.
  • Tier 1: Other large energy providers in the country, who individually make up at least 10% of the market share. These Tier 1 retailers include Simply Energy, Red Energy and Lumo (both owned by Snowy Hydro), and Alinta Energy.
  • Tier 2: The rest of the energy retailers in Australia make up Tier 2. These are smaller retailers, which often do away with confusing discounts in exchange for simple plans with low rates. Tier 2 retailers include green providers like Powershop, wholeshare retailers like Powerclub, and local community-driven providers like DC Power Co.

Types of Energy Discounts

When choosing an energy provider, you’ll often see “X% off the reference price” in the energy plan details. This is how much of a discount you’ll receive when you switch to this plan, compared to the government-set reference price (also known as the Default Market Offer or Victorian Default Offer). The reference price is often used as a cap for energy prices in Australia, and energy providers are legally obligated to tell you how much less (or more, in some cases) their plan is when compared to the reference price.

Discounts and benefits fall into a few different categories:

Types of Energy Plan Discounts
Type of BenefitDescription of Benefit
Low RatesThe base rate for your daily supply charge and price per kWh of usage are low, without any confusing discounts. These rates can be fixed, meaning they won’t change for a certain amount of time (usually 12 months) or they can be variable, meaning the company can change the prices whenever they want (usually once a year).
Conditional DiscountsDiscounts off your energy bill that have a condition attached to them. Usually, the conditions involve paying on time or using direct debit. If you know you can meet these conditions, these are generally a good deal.
Unconditional DiscountsInstead of low, fixed rates, you simply get a percentage discount off your total energy bill.
Wholesale PricingCertain energy retailers, like Powerclub or Energy Locals, sell electricity at wholesale prices to residential customers. Instead of paying more in supply and usage rates, customers pay a membership fee which grants them access to these wholesale rates.
Other OffersOffers in addition to, or instead of, other discounts. Other offers that an energy retailer might include in your plan can be points for certain membership programmes, e-gift cards, or a credit off your energy bill every 6 or 12 months.

Going Green?

More and more energy providers are making the switch to environmentally friendly and community-based initiatives, giving customers the opportunity to make a difference with their energy consumption. Whether this is through higher feed-in-tariffs for solar panel users like Diamond Energy, 100% renewable energy generation like Powershop, or community-centered providers like Enova Energy, making a conscious decision to choose an environmentally-friendly energy retailer doesn’t need to be complicated or expensive.

Different Energy Tariffs

Depending on the type of meter you have, you might be able to choose which type of tariff you want your electricity plan to be on. Not every type of tariff is available within every energy distribution network, so make sure to discuss with your energy provider what is available for you.

Energy Tariffs Explained
Tariff TypeDescription
Flat or Single Rate TariffAlso known as the standard, peak-only,, or anytime tariff. This tariff is available to all customers, and charges people the same amount for their electricity usage no matter when that electricity is used. Rates are usually lower than peak rates for a time-of-use tariff, but higher than off-peak rates, and could be a good choice if you’re home and using most of your electricity during weekday evenings.
Block TariffThis is often the tariff type used for natural gas plans, in addition to electricity, where energy rates are charged in blocks of energy consumed. For example, if you’re on a block tariff for electricity you might be charged 36c/kWh for the first 10kWh used per day, then 33c/kWh for the next 12kWh, and 29c/kWh for the remaining daily usage.
Time-of-Use TariffEnergy rates that change depending on the time of day. Energy rates are usually higher during peak periods when there’s more demand on the grid, such as weekday evenings when everyone is home from work, and lower during off-peak periods such as overnight and on the weekend. If you’re often out during evening hours, or run a lot of appliances overnight or on weekends, this might be a good tariff choice.
Demand RariffPlans with demand tariffs come with the usual usage and supply rates, but come with additional demand charges on top. Demand tariffs measure how intensely you use electricity and will cost you more if you are using a lot of electricity at once. Demand charges can be applied differently, depending on your retailer.
Controlled Load 1 & 2A controlled load is a tariff that applies to a single appliance such as an electric hot water heater or underfloor heating, which usually run during off-peak times. These appliances are on a separate meter, and have lower rates for off-peak hours.
Feed-in-tariffA solar feed-in-tariff is what your energy provider pays you for the solar energy you send back into the grid. Choosing an electricity provider with a high solar feed-in-tariff can help offset your electricity bill and save you money, if you have solar PV panels installed onto your home. You could be eligible for a solar rebate.

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How to Switch your Electricity & Gas Provider

Unless you’re moving house or actually want to disconnect the energy supply from your current address, you probably won’t need to get in contact with your current energy provider. In Australia, you just need to sign up to open a new account with your new provider and they’ll make the switch for you.

Most providers allow you to sign up online, and over the phone. When you sign up, you’ll need to provide your personal details, and a valid form of identification to make sure you’re eligible for the energy plan you want. These days, almost all energy providers run a credit check to make sure you’re eligible but unless your credit score is particularly low, it probably won’t prevent you from signing up.

Market OfferAll energy customers, regardless of credit score, are entitled to the Default Market Offer (also known as the Standing Offer) set by the government, meaning a low credit score won’t prevent you from actually having energy supplied to your home.

Once you’ve made the switch to your new energy provider online or over the phone, it could take up to three months to actually start getting billed by your new provider. You’ll only be switched once your previous energy retailer takes a final meter reading (usually done every three months, but a special reading can be requested earlier) and sends you your final bill.

You may be contact many times about switching to other suppliers. Read our guide on joining the do not call register to avoid spammy calls.

Moving House and Switching Providers

If you’re just switching energy retailers, you probably won't need to get in touch with your previous provider. However, if you’re moving house you will need to call to arrange a disconnection with your previous provider at your old residence, as well as arrange the reconnection with your new provider at your new residence.

Disconnections and reconnections often come with fees which are set by the energy distributor, not your provider. When moving house, your energy distributor may also change as well, therefore when registering its also a good idea to check and see who to call in the event of a power cut in your area.

Cooling Off Period

The cooling off period is the 10-business-day period after signing up to a new energy provider and receiving your plan agreement, where you can still back out of the new service and continue to have energy provided to you by your previous retailer. All new energy customers are entitled to a 10-day cooling off period, which starts when your new provider sends you your agreement information or you sign the contract.

During these 10 business days, your old energy provider might get in touch with you to try and win you back, with new and better discounts or benefits. You can always cancel your new contract within these 10 business days without penalty, and go back to your old provider if they offer you a better deal.

Call Today

Energy Switch Service in Australia

There are many energy comparison services, such as Selectra, available in Australia. The New South Wales government, for example, offers their Energy Switch Service NSW to residents of the state. You can upload your energy bill and compare energy plans and prices to find the best deal. if you have any questions about switching suppliers, the energy ombudsman can also assist you. Once you've found a new plan, they'll make the switch for you.

Compare Electricity Rates & Plans

In searching for the best electricity plan, it is important to compare electricity rates to those from other top energy retailers. Below we have compared the rates, per state, forSelectra’s top choices for energy retailers.

Compare Electricity Rates in New South Wales

Compare Electricity Rates in NSW
RankEnergy Provider + PlanEstimated Yearly PriceAdditional Information
 Energy Locals
Energy Locals Online Member
 
$1,540 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
57.00c/day
 Sumo
SUMO Assure
 
$1,610 / yearBenefits:
Solar Feed-In & Smart Meter Compatible
   
Daily Supply Charge:
96.80c/day
 Origin Go Variable$1,640 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
88.02c/day
 EnergyAustralia Flexi Plan$1,640 / yearBenefits:
Solar Feed-In & GreenPower
   
Daily Supply Charge:
95.70c/day
 Ovo
Ovo Energy The One Plan
 
$1,680 / yearBenefits:
GreenPower
   
Daily Supply Charge:
93.50c/day
 AGL Value Saver$1,730 / yearBenefits:
Solar Feed-In & GreenPower
   
Daily Supply Charge:
87.58c/day

*Figures are for illustrative purposes only and don't compare all products, providers, plan features, offers, or rates. Products are compared like-for-like and any distinctions between products are clearly marked. Not all offers may be available in all locations or distribution networks. Rates based on electricity distributor for Sydney (2000) with an average use of 3900kWh. Calculations are based on the reference price for this area. Any offers or estimated costs compared are for example purposes only and may change based on your individual circumstances or habits. Selectra advises you to do your own research at energymadeeasy.com before determining if you should sign up for a new energy plan. Offers and availability are subject to change. Read more about Basic Plan Information here. Valid March 2024.

Important Information Show Less

Compare Electricity Rates in Australian Capital Territory

Compare Electricity Rates in ACT
RankEnergy Provider + PlanEstimated Yearly PriceAdditional Information
 Origin Go Variable$1,550 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
104.83c/day
 Energy Locals
Energy Locals Online Member
 
$2,030 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
59.00c/day
 Energy Australia Flexi Plan$2,050 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
104.04c/day

*Figures are for illustrative purposes only and don't compare all products, providers, plan features, offers, or rates. Products are compared like-for-like and any distinctions between products are clearly marked. Not all offers may be available in all locations or distribution networks. Rates based on electricity distributor for Canberra (2600) with an average use of 6100kWh. Calculations are based on the reference price for this area. Any offers or estimated costs compared are for example purposes only and may change based on your individual circumstances or habits. Selectra advises you to do your own research at energymadeeasy.com before determining if you should sign up for a new energy plan. Offers and availability are subject to change. Read more about Basic Plan Information here. Valid March 2024.

Important Information Show Less

Compare Electricity Rates in Victoria

Compare Electricity Rates in VIC
RankEnergy Provider + PlanEstimated Yearly PriceAdditional Information
 Ovo
Ovo Energy The One Plan
 
$1,120 / yearBenefits:
Ongoing Contract & Interest Rewards
   
Daily Supply Charge:
104.39/day
 Origin Go Variable$1,170 / yearBenefits:
No Lock-In Contract
   
Daily Supply Charge:
91.05c/day
 AGL Residential Value Saver$1,170 / yearBenefits:
Solar Feed-In, Variable Rate Plan & GreenPower
   
Daily Supply Charge:
91.05c/day
 EnergyAustralia Flexi Plan$1,190 / yearBenefits:
Carbon Neutral, 1 Year Benefit Plan & $50 Onlne Sign Up Credit
   
Daily Supply Charge:
115.25c/day
 Energy Locals
Energy Locals Online Member
 
$1,310 / yearBenefits:
No Lock-In Contract, Solar Feed-In & $50 Referral Credit
   
Daily Supply Charge:
58.00c/day
 Sumo
SUMO Assure
 
$1,310 / yearBenefits:
No Lock-In Contract
   
Daily Supply Charge:
110.00c/day

*Figures are for illustrative purposes only and don't compare all products, providers, plan features, offers, or rates. Products are compared like-for-like and any distinctions between products are clearly marked. Not all offers may be available in all locations or distribution networks. Rates based on electricity distributor for Melbourne (3000) with an average use of 4,000kWh/year. Calculations are based on the reference price for this area. Any offers or estimated costs compared are for example purposes only and may change based on your individual circumstances or habits. Selectra advises you to do your own research at energymadeeasy.com before determining if you should sign up for a new energy plan. Offers and availability are subject to change. Read more about Basic Plan Information here. Valid March 2024.

Important Information Show Less

Compare Electricity Rates in Queensland

Compare Electricity Rates in QLD
RankEnergy Provider + PlanEstimated Yearly PriceAdditional Information
 Energy Locals
Energy Locals Online Member
 
$1,740 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
85.00c/day
 EnergyAustralia Basic Home$1,740 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
85.00c/day
 Ovo
Ovo Energy The One Plan
 
$1,840 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
130.13c/day
 Sumo
SUMO Assure Advantage
 
$1,860 / yearBenefits:
Solar Feed-In & Smart Meter Compatible
   
Daily Supply Charge:
106.70c/day
 Origin Go Variable$1,870 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
127.29c/day
 AGL Residential Value Saver$1,960 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
133.36c/day

*Figures are for illustrative purposes only and don't compare all products, providers, plan features, offers, or rates. Products are compared like-for-like and any distinctions between products are clearly marked. Not all offers may be available in all locations or distribution networks. Rates based on electricity distributor for Brisbane (4000) with an average use of 4,600kwh/year. Calculations are based on the reference price for this area. Any offers or estimated costs compared are for example purposes only and may change based on your individual circumstances or habits. Selectra advises you to do your own research at energymadeeasy.com before determining if you should sign up for a new energy plan. Offers and availability are subject to change. Read more about Basic Plan Information here. Valid March 2024.

Important Information Show Less

Compare Electricity Rates in South Australia

Compare Electricity Rates in SA
RankEnergy Provider + PlanEstimated Yearly PriceAdditional Information
 Energy Locals
Energy Locals Online Member
 
$1,820 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
78.00c/day
 Origin Value$1,890 / yearBenefits:
Solar Feed-In
   
Daily Supply Charge:
108.67c/day
 Ovo
Ovo Energy The One Plan
 
$1,930 / yearBenefits:
Solar Feed-In, GreenPower & Smart Meter Compatible
   
Daily Supply Charge:
148.50c/day
 Sumo
SUMO Lite Residential
 
$2,090 / yearBenefits:
Solar Feed-In
   
Daily Supply Charge:
121.00c/day
 AGL Residential Value Saver$2,110 / yearBenefits:
Solar Feed-In
   
Daily Supply Charge:
106.66c/day
 EnergyAustralia Flexi Plan$2,270 / yearBenefits:
Solar Feed-In
   
Daily Supply Charge:
104.50c/day

*Figures are for illustrative purposes only and don't compare all products, providers, plan features, offers, or rates. Products are compared like-for-like and any distinctions between products are clearly marked. Not all offers may be available in all locations or distribution networks. Rates based on electricity distributor for Adelaide (5000) with an average use of 4000kWh. Calculations are based on the reference price for this area. Any offers or estimated costs compared are for example purposes only and may change based on your individual circumstances or habits. Selectra advises you to do your own research at energymadeeasy.com before determining if you should sign up for a new energy plan. Offers and availability are subject to change. Read more about Basic Plan Information here. Valid March 2024.

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